ACTION: Publication of Memorandum of Understanding between the
Nuclear Regulatory Commission (NRC) and the Occupational Safety and Health
Administration (OSHA).

SUMMARY: NRC and OSHA have entered into a Memorandum of Understanding
that describes the authorities of NRC and OSHA in implementing the Energy
Policy Act of 1992 provision on occupational safety and health hazards at the
gaseous diffusion plants, currently operated by the U.S. Enrichment
Corporation (USEC), covering inspection, investigation, enforcement, and
other regulation relating to such hazards. A memorandum of agreement is
required by the new USEC Privatization Act, and will apply to operations of
USEC and any corporation which succeeds USEC. The text of the Memorandum of
Understanding is set forth below.

Memorandum of Understanding Between the Nuclear Regulatory Commission and
the Occupational Safety and Health Administration With Respect to the Gaseous
Diffusion Plants

I. Legislation and Authorities

The Atomic Energy Act of 1954, as amended by the Energy Policy Act of 1992
(the Act), created the United States Enrichment Corporation (USEC), a
government corporation, to manage and operate the two uranium gaseous
diffusion enrichment plants (GDPs) in Paducah, Kentucky, and Piketon, Ohio,
owned and previously operated by the U.S. Department of Energy (DOE).
Pursuant to the Act, on July 1, 1993, USEC began leasing from DOE substantial
operating portions of the two GDPs. Section 1312 of the Act requires USEC to
be subject to and comply with the Occupational Safety and Health Act (OSH
Act) in the same manner, and to the same extent, as an employer is subject to
the OSH Act, notwithstanding sections 3(5), 4(b)(1), and 19 of the OSH Act.

In addition, the Act requires the Nuclear Regulatory Commission (NRC) to
promulgate standards applicable to the GDPs, to protect the public health and
safety from radiological hazards, and to provide for the common defense and
security. NRC must establish an annual certification process for compliance
with these standards. NRC published its final standards, 10 CFR Part 76,
"Certification of Gaseous Diffusion Plants," on September 23, 1994 (59 FR
48944). NRC will assume regulatory oversight responsibility with respect to
USEC's compliance with the Part 76 standards after NRC completes the first
compliance certification process.

The USEC Privatization Act, signed into law on April 26, 1996, provides for
establishment of a private corporation to succeed USEC. The USEC
Privatization Act specifies that the private corporation will be subject to
the OSH Act, but the exceptions to sections 3(5), 4(b)(1), and 19 were
removed with respect to the private successor. Furthermore, the USEC
Privatization Act requires NRC and Occupational Safety and Health
Administration (OSHA) to enter into a memorandum of agreement, within 90 days
of enactment of the Privatization Act, to govern the exercise of their
authority over occupational safety and health at the GDPs.

II. Background and Purpose

A. Both NRC and OSHA have responsibilities concerning occupational safety
and health at GDPs. Because it is not always practical to sharply identify
boundaries between the nuclear and radiological safety regulated by NRC and
the industrial safety regulated by OSHA, the two agencies have agreed to
coordinate their regulatory programs to assure worker safety, avoid
regulatory gaps in the protection of workers, and avoid duplicative
regulation.

B. The purpose of this Memorandum of Understanding (MOU) between NRC and
OSHA is to delineate the general areas of responsibility of each agency; to
describe generally the efforts of the agencies to achieve worker protection;
and to provide guidelines for coordination of interface activities between
the two agencies at the GDPs. The MOU applies both to USEC and any private
successor corporation.

C. DOE remains the owner of the GDP sites and facilities, and continues to
conduct and regulate activities at the sites that are outside NRC
jurisdiction. This MOU does not apply to DOE facilities that are not leased,
and does not affect jurisdictional issues between OSHA and DOE.

III. Hazards Associated With GDPS

Working conditions at the GDPs involve both radiological and
non-radiological occupational hazards. Frequently, conditions involve a
combination of these hazards. Examples are: (1) radioactive materials and
other chemicals, in the same work area, that present potential radiological
and chemical hazards, (2) hazardous chemicals that could adversely affect
radiological safety or could be released from the processing of radioactive
materials, and (3) a fire or explosion hazard that could cause a release of
radioactive material and other hazardous chemicals.

In general, NRC will apply its standards to working conditions involving
radiological hazards, OSHA will apply its standards to working conditions
involving non-radiological hazards, and both agencies will apply their
standards to conditions involving a combination of hazards. NRC and OSHA will
coordinate their efforts as specified in this memorandum.

IV. NRC Responsibilities

NRC is responsible for certifying two leased GDPs, as mandated by the Act
and other applicable statutes. NRC will conduct compliance certification in
accordance with 10 CFR Part 76. This will include regulation of radiological
hazards and any other hazards that may affect radiological safety of the
facilities.

NRC's responsibilities include protecting public health and safety,
including workers, and protecting and safeguarding materials and plants in
the interest of national security. Agency functions are performed through:
standards-setting and rulemaking; technical reviews and studies; conduct of
public hearings; issuance of compliance certificates; inspection,
investigation and enforcement; and evaluation of operating experience.

V. OSHA Responsibilities

OSHA is responsible for administering the requirements established under the
OSH Act and OSHA standards. Under the OSH Act, employers have a general duty
to furnish each employee with a place of employment that is free from
recognized hazards that can cause death or serious physical harm and to
comply with all OSHA standards, rules, and regulations. OSHA standards
contain requirements designed to protect employees against workplace hazards.
Under the OSH Act, OSHA is authorized among other things to conduct workplace
health and safety inspections, including inspections in response to employee
complaints, and to issue citations and conduct enforcement actions.

Section 1312 of the Energy Policy Act contains certain exceptions to the OSH
Act as applied to USEC. The USEC Privatization Act deleted these exceptions
with respect to application of the OSH Act to a private corporation which
succeeds USEC.

VI. Implementation

In recognition of the agencies' authorities and responsibilities enumerated
above, the following procedures will be followed:

A. NRC will apply its standards in inspection and enforcement of working
conditions involving radiological hazards or combined hazards as described in
Paragraph III. OSHA will apply its standards in inspection and enforcement of
working conditions involving non-radiological hazards or combined hazards as
described in Paragraph III. OSHA will not normally conduct enforcement
actions with regard to GDP working conditions that involve solely
radiological hazards.

B. It is not intended that either agency will in any way be restricted from
regulating safety within their respective jurisdictions. If NRC or OSHA
identifies, or is notified by the operator of, a conflict between NRC and
OSHA requirements, both agencies will work together to resolve the concern
promptly.

C. NRC has established a permanent site office and assigned full-time
inspectors at each GDP, and plans to continue this arrangement for the
foreseeable future. The results of NRC inspections will be provided to OSHA
on request, subject to applicable procedures to protect classified and
proprietary information. The information will also be available in NRC local
public document rooms, and available to GDP workers on request, except for
any portions containing classified, proprietary, private, or other
information withheld from the public in accordance with applicable laws and
regulations. NRC resident inspectors will also be available to discuss
working conditions with workers.

D. Although NRC does not conduct inspections exclusively focused on
non-radiological safety, in the course of inspections related to radiological
hazards or combined hazards, NRC personnel may identify non-radiological
worker safety concerns. NRC will bring the identified matters to the
attention of GDP management. Significant worker safety concerns will be
documented in writing and made available as specified in Paragraph VI.C. In
addition, OSHA will be informed as follows:

1. Referral to OSHA of Hazards Identified by NRC. If non-radiological worker
safety concerns are identified by NRC, or if USEC demonstrates a pattern of
unresponsiveness to non-radiological worker safety concerns identified by
others, NRC will inform the appropriate OSHA Regional Office.

2. Referral to OSHA of Worker Safety and Health Complaints. NRC will refer
worker safety or health complaints, related to non-radiological or combined
hazards, to the appropriate OSHA Regional Office in accordance with existing
NRC procedures. These procedures provide for protection of the identity of
the complainant to the extent feasible.

E. To the extent practicable, OSHA inspectors will inform the NRC Site
Office, on arrival on site, of OSHA inspections in areas where combined
radiological and non-radiological hazards are present as described in
Paragraph III. Findings from such inspections will be shared and coordinated
with NRC.

F. OSHA Regional Offices will inform the NRC Region III Office or Site
Office of matters related to radiological hazards or combined hazards, when
such matters come to their attention during inspections or through
complaints. Workers' complaints falling within NRC jurisdiction will be
handled by NRC in accordance with existing procedures.

G. Worker representatives may accompany NRC inspectors on inspections of
working conditions as provided in 10 CFR Part 19. Worker representatives may
accompany OSHA inspectors as provided in 29 CFR Part 1903.

H. The employee protection provisions in Section 211 of the Energy
Reorganization Act of 1974, as amended, 10 CFR Part 76.7, and Section 11 (c)
of the OSH Act are applicable to employees of USEC and contractors at its
administered facilities.

I. In recognition of the fact that both NRC and OSHA will conduct
inspections in areas where combined hazards are present, OSHA will provide
NRC personnel with basic chemical and industrial safety training in OSHA
safety standards, consistent with ongoing OSHA training programs and resource
constraints. Also, NRC will provide OSHA personnel with training in basic
radiation safety requirements, consistent with ongoing NRC training programs
and resource constraints. Details of such training will be as mutually agreed
to by the NRC Technical Training Center and the OSHA National Training
Institute.

VII. Enforcement

A. Each agency will conduct an inspection and enforcement program within its
responsibilities as warranted.

B. Each agency will take enforcement actions as it deems appropriate within
the limits of its authorities. Upon completion of any NRC and/or OSHA
inspections/investigations associated with the same set of facts or the same
incident for which either agency intends to take enforcement action, NRC and
OSHA will consult with each other on the results of their respective
inspections and will jointly define the scope of enforcement actions to
minimize duplicative enforcement actions and preclude duplicative civil
penalties.

VIII. Contacts

NRC and OSHA will designate appropriate contacts for implementation of this
memorandum. A list of OSHA contacts will be provided to the Director, Office
of Nuclear Material Safety and Safeguards, NRC. A list of NRC contacts will
be provided to the Director of Policy, OSHA.

IX. Effective Date, Revision, and Termination

This memorandum shall be effective upon signature by authorized
representatives of the respective agencies, and shall continue in effect
until revised by mutual agreement, unless terminated by either party upon 120
days notice in writing.

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